Tax Planning
Tax Planning
Navigating the complexities of tax regulations can be challenging, but with New Millennium Group, you don't have to do it alone. Our tax planning services are designed to help you minimize your tax liabilities and maximize your savings. We offer personalized strategies that align with your financial goals, ensuring compliance while optimizing your tax situation. From individual tax planning to business tax strategies, our experts are here to provide you with effective solutions that keep more money in your pocket.
Common Questions
How can I reduce my tax burden on retirement income?
There are several strategies to reduce your tax burden in retirement. One effective approach is to diversify your income sources across different types of accounts, such as Roth IRAs, traditional IRAs, and taxable accounts. By strategically withdrawing from these accounts, you can manage your taxable income and potentially stay in a lower tax bracket. Additionally, taking advantage of tax deductions and credits, such as those for medical expenses or charitable contributions, can further reduce your tax liability.
When should I start taking withdrawals from my retirement accounts to minimize taxes?
The timing of your withdrawals is crucial for minimizing taxes in retirement. Required Minimum Distributions (RMDs) must start by age 73 and these can significantly affect your tax liability post-retirement. The goal is to be in control of your taxable income before and into retirement with some key diversification. A personalized strategy based on your financial situation will help optimize your withdrawals and reduce your overall tax burden.
Are Social Security benefits taxable, and how can I plan for this?
Yes, Social Security benefits can be taxable, depending on your combined income (which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits). If your combined income exceeds certain thresholds, up to 85% of your benefits may be taxed. To manage this, you can carefully plan other sources of income, such as when to start taking distributions from retirement accounts, to potentially reduce the amount of Social Security benefits that are taxed.